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Zero rating zone textile units attract GST on electricity
Aug '11
Through two separate orders, Pakistan's Federal Board of Revenue (FBR) has imposed a General Sales Tax (GST) of 16 percent on supply of power to about 85 registered textile mills that fall in the zero-rating region.

The order says that the textile mills that have been de-notified for zero sales tax rating would have to pay a 16 percent GST on their electricity bill, compared to the earlier zero sales tax facility they enjoyed. This would increase the cost of production of the textile mills to an extent.

The FBR has asked the Islamabad Electric Supply Company (Iesco) to start levying sales tax on the supply of electricity to the de-notified textile units. It has further instructed the Chief Commissioner of the Regional Tax Office in Islamabad to oversee the effective implementation of its General Order by Iesco officials.

Similarly, the FBR has asked the Multan Electric Power Company (Mepco) to immediately start levying a sales tax of 16 percent on the electricity bill of the companies given in the list of 85 registered units. The Chief Commissioners of Regional Tax Offices at Multan and Bahawalpur have been asked by the FBR to coordinate with Mepco officials for the same.

Fibre2fashion News Desk - India

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